KELLOGG, Idaho, April 26, 2005 (PRIMEZONE) -- New Jersey Mining Company (OTCBB:NJMC) announces that it has received payment for sulfide concentrates shipped in March. The pyrite concentrate contained 104.1 grams/tonne gold (3.04 ounces per ton) and most was produced from development ore mined from the Golden Chest exploration ramp in 2004. In addition, products containing up to 30% gold were recovered from cleanout of the ball mill. Final revenue amounts will be reported in the first and second quarter 10QSB reports.
Preparations are nearly complete in order to start mining the Katie Dora vein at the Golden Chest mine. Most mining equipment has been procured. It is anticipated that ore production will commence in May and that more concentrates will be produced in June and continuing throughout the year. A mining rate of 500 tonnes per month is planned for the project, and the head grade of the ore is expected to run 13 grams of gold per tonne according to reserve calculations. The gold grade of the pyrite concentrates produced from Golden Chest ore should increase with higher grade ore mined than the 2004 development ore, which had been diluted because the primary purpose was exploration.
The primary activity of the Company will continue to be gold and silver exploration. Operating margin from mining and milling high grade ore will be used to further exploration projects like the Idaho vein at the Golden Chest mine where a significant gold intercept was drilled in 2004. The intercept was from hole DDH04-6 which cut 17.6 meters (57.7 feet) that assayed 4.83 grams per ton (gpt) gold which included 5.9 meters that assayed 10.13 gpt gold. Four veins were intercepted by this drill hole over a 17.6 meter length. This intercept was the deepest drillhole on the Golden Chest property to date and seems to indicate that the gold grade of the Idaho vein is increasing with depth.
Plans are being made to drill the Idaho vein by stepping out drill holes to test the extent of gold mineralization on strike and dip. The Idaho vein is a massive white quartz vein that outcrops at the surface was exposed for 300 meters in the historic Idaho No. 3 level before the drift turned away from the vein. DDH04-6 intercepted the Idaho vein 70 meters below the Idaho No. 3 level and the gold grade is substantially higher than the grade found above.
New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal ore resources in the Coeur d'Alene Mining District of northern Idaho. The Company has a portfolio of mineral properties in the Coeur d'Alene Mining District including the New Jersey mine, the Silver Strand mine, the Golden Chest mine, the CAMP project, the Scotch Thistle project, and the Silver Button project.
This release contains certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the Company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB for the year ended December 31, 2004.
Further information about New Jersey Mining Company can be reviewed on the website of the Securities and Exchange Commission at www.sec.gov or on the company's website at www.newjerseymining.com.